Michigan Workers Comp Insurance

With limited exceptions, every employer in Michigan with one or more employee(s) is required by law to have a valid workers' compensation policy at all times. This "no fault" insurance not only provides injured workers with medical care and partial wage replacement, but also protects the policyholders from potentially damaging lawsuits. Although most companies in MI purchase a traditional commercial insurance policy, there are alternative methods of coverage which include licensing as a self insurer, gaining membership in a self insurance group, or obtaining coverage in the Assigned Risk Pool.

MI Workers Comp Insurance Specific Regulations

• Having one full time employee or three or more-part time employees at any time requires a company to have workers’ compensation insurance in Michigan.
• If you work for someone else you will not be covered by their insurance policy unless you are an employee. This requires independent contractors to have their own workman’s compensation insurance. If the independent contractor is a single person, does work on another company’s behalf, and does not maintain a separate business or office public services, that worker will be considered an employee rather than a contractor
• Michigan offers a private insurance market, except to those businesses that offer state-run workers’ compensation
• Michigan also offers a state fund that competes with the private market and an assigned risk pool for those businesses struggling to secure insurance
• In Michigan, sole proprietors are exempt from coverage and may also exclude employees if they are all either a spouse, a child, or a parent
• Partners in Michigan are included in coverage, but have the option to exclude yourself if all employees are partners
• Michigan offers corporate officers the option to exclude yourself, if you own 10% or more stock with all the employees being corporate officers
• In Michigan members of LLCs are included in coverage as long as they own 10% of the company with all the employees being corporate officers